Shares of Tata Motors Commercial Vehicles (TMCV) jumped 4% on Tuesday, reaching a high of ₹428.20, as several top brokerages gave the stock bullish ratings.
Why Tata Motors CV Is Gaining Momentum
The Tata Group has been attracting investor interest after a string of positive calls from major brokerage houses. This has helped the stock stay strong even when the broader market is volatile.
Analyst Targets and Rationale
- Nomura started coverage with a Buy rating and a price target of ₹481, implying about a 40% upside from the current price. The firm expects a domestic up‑cycle driven by Tata Motors CV’s 46% share of the medium‑ and heavy‑truck market in FY25.
- JPMorgan gave the stock an Overweight rating and a target of ₹475, pointing to a modest recovery in the commercial‑vehicle segment after three years of flat performance.
- Bank of America also rated the stock Buy with a ₹475 target, forecasting a 15% compound‑annual growth in EBITDA from FY26‑FY28 and steady market‑share gains.
- Ambit Capital initiated coverage with a Buy rating and a target of ₹430, highlighting the revenue boost from the recent Iveco‑TMCV merger.
Key Growth Drivers Mentioned by Analysts
- Domestic truck volumes are expected to grow 10% in FY26‑FY27 and 5% in FY28, supported by higher freight rates and better profitability for fleet owners.
- The average age of India’s truck fleet is about 10 years, meaning many operators may replace older vehicles soon.
- Regulatory changes and anticipated price hikes could trigger pre‑buying activity in FY27‑FY28.
- The Iveco acquisition expands the company’s addressable market to over ₹2 trillion in potential revenue and could add up to 0.5% of combined revenues through synergies.
- Strong pricing discipline and a solid return on capital employed (about 35%) are expected to protect margins.
What This Means for Retail Investors
If the forecasts hold, Tata Motors CV could see a substantial rise in share price, giving investors a chance to benefit from both domestic growth and the expanded global footprint after the Iveco deal.
Disclaimer
Remember, this is just an overview of analyst opinions, not a prediction. Do your own research or talk to a certified financial advisor before making any investment decisions.